A recent downturn in the cryptocurrency market has been triggered by Ethereum's failure to maintain its position after testing a key multi-year resistance level.
Overview of the Current Market Situation
The broader cryptocurrency market is experiencing a notable pullback. The main reason for this has been Ethereum (ETH)'s inability to sustain momentum after testing critical multi-year resistance around $3,940. As a result, ETH has dropped to around $3,675, down 4% on the day. This weakness has also affected altcoins, particularly the **Artificial Superintelligence Alliance (FET)** token.
Technical Analysis of FET
On the daily chart, FET is trading within a symmetrical triangle pattern, which is typically a neutral formation, suggesting that it could resolve either to the upside or downside based on the breakout direction. The price has reached the lower boundary of this triangle at around $0.65. This lower trendline has acted as dynamic support for several months, and its significance is amplified by the recent breakdown below the 200-day moving average, currently at approximately $0.72.
Outlook and Possible Scenarios for FET
If FET manages to hold the $0.65 support and initiates a bounce, it could reclaim the 200-day moving average, a key technical trigger that might attract bullish momentum. A successful move above this level could set the stage for a push toward the triangle's upper resistance near $0.80. Conversely, failure to hold this lower trendline support could lead to a bearish breakdown, with FET potentially dropping toward the next support zone around $0.55.
Given the current situation, the next few days will be crucial for FET and the cryptocurrency market as a whole.
